H E A L T H W E A L T H C A R E E R B R I D G I N G T H E D I V E R S I T Y G A P B U I L D I N G A F R I C A N - A M E R I C A N A N D L A T I N O T A L E N T P I P E L I N E S F O R T H E F I N A N C I A L S E R V I C E S I N D U S T R Y I N C H I C A G O OCTOBER 30 th, 2015 Rick Guzzo Alina Polonskaia Bess Tschantz-Hahn
O B J E C T I V E S O F T H E C H I C A G O F I N A N C I A L S E R V I C E S P I P E L I N E I N I T I A T I V E Increase the representation of African-Americans and Latinos at all levels in the FS industry in Chicago Improve overall cultural competency in the sector F O R M AT I O N ( 2 0 1 3 ) R E S E A R C H ( 2 0 1 5 ) I M P L E M E N T AT I O N ( 2 0 1 5 + ) MERCER 2015 1
O R G A N I Z A T I O N S P A R T I C I P A T I N G I N T H E R E S E A R C H MERCER 2015 2
C H I C A G O F S I N D U S T R Y D E M O G R A P H I C S Chicago Chicago FS Industry Chicago FS Execs /Sr. Mgt. Chicago FS Mid-Mgt.. Chicago FS Prof. / Tech. / Sales.. MERCER 2015 3
G E T Y O U R C O P Y T O D A Y www.fspchicago.org MERCER 2015 4
R E S E A R C H S T R U C T U R E FS priorities and challenges The flow of talent in the Chicago FS industry Experiences in the Chicago FS industry The upshot African-American and Latino hires, promotions, and exits Survey of African-Americans and Latinos Actions for employers and industry Projected future representation MERCER 2015 5
F S P R I O R I T I E S A N D C H A L L E N G E S What we heard in interviews with Chicago s FS employers Recruitment Competition for experienced diverse talent is fierce Most larger organizations hire from the same top schools and build up their recruitment functions to be able to compete Development Employers emphasize the importance of developing diverse talent and building more inclusive environments Effective talent management is seen as foundational Retention Diverse talent is moving along LaSalle Street Sponsorship during onboarding and throughout careers is essential to retention Managers play a critical role in retaining diverse employees MERCER 2015 6
R E S E A R C H S T R U C T U R E FS priorities and challenges The flow of talent in the Chicago FS industry Experiences in the Chicago FS industry The upshot African-American and Latino hires, promotions, and exits Survey of African-Americans and Latinos Actions for employers and industry Projected future representation MERCER 2015 7
A F R I C A N - A M E R I C A N S I N T H E C H I C A G O - A R E A F S I N D U S T R Y R E P R E S E N T A T I O N Counts represent 2013 EEOC NAICS-2 Finance and Insurance excluding EEOC NAICS-3 Insurance for Chicago-Naperville-Elgin, IL-IN-WI CBSA. National rates have been applied for hires, exits and promotions MERCER 2015 8
A F R I C A N - A M E R I C A N S I N T H E C H I C A G O - A R E A F S I N D U S T R Y R E P R E S E N T A T I O N A N D T A L E N T F L O W S Counts represent 2013 EEOC NAICS-2 Finance and Insurance excluding EEOC NAICS-3 Insurance for Chicago-Naperville-Elgin, IL-IN-WI CBSA. National rates have been applied for hires, exits and promotions MERCER 2015 9
L A T I N O S I N T H E C H I C A G O - A R E A F S I N D U S T R Y R E P R E S E N T A T I O N Counts represent 2013 EEOC NAICS-2 Finance and Insurance excluding EEOC NAICS-3 Insurance for Chicago-Naperville-Elgin, IL-IN-WI CBSA. MERCER 2015 10
L A T I N O S I N T H E C H I C A G O - A R E A F S I N D U S T R Y R E P R E S E N T A T I O N A N D T A L E N T F L O W S Counts represent 2013 EEOC NAICS-2 Finance and Insurance excluding EEOC NAICS-3 Insurance for Chicago-Naperville-Elgin, IL-IN-WI CBSA. FSP rates of hires, exits and promotions MERCER 2015 11
F U T U R E R E P R E S E N T A T I O N O F A F R I C A N - A M E R I C A N S I N S E N I O R M A N A G E M E N T T H E S T O R Y : N O C H A N G E I N 5 Y E A R S, P R O J E C T E D D E C L I N E A F T E R T H A T Rate of hiring, promotions, and turnover brought to parity with all other ethnic groups Turnover rate brought to parity with all other ethnic groups Hiring rate brought to parity with all other ethnic groups Promotion rate brought to parity with all other ethnic groups Representation projections for African-American employees with no changes to hiring, promotion, and turnover rates MERCER 2015 12
F U T U R E R E P R E S E N T A T I O N O F L A T I N O S I N S E N I O R M A N A G E M E N T T H E S T O R Y : N O C H A N G E I N 5 Y E A R S, P R O J E C T E D D E C L I N E A F T E R T H A T Rate of hiring, promotions, and turnover brought to parity with all other ethnic groups Turnover rate brought to parity with all other ethnic groups Hiring rate brought to parity with all other ethnic groups Promotion rate brought to parity with all other ethnic groups Representation projections for Latino employees with no changes to hiring, promotion, and turnover rates MERCER 2015 13
T A L E N T F L O W S : S U M M A R Y O F K E Y F I N D I N G S A F R I C A N - A M E R I C A N S A N D L A T I N O S Representation will decline at the leadership levels A choke point exists in the flow of talent into leadership positions Retention is a major challenge The Professionals career level offers significant advancement opportunity MERCER 2015 14
R E S E A R C H S T R U C T U R E FS priorities and challenges The flow of talent in the Chicago FS industry Experiences in the Chicago FS industry The upshot African-American and Latino hires, promotions, and exits Survey of 9,960 Actions for employers and industry Projected future representation MERCER 2015 15
N E A R L Y 1 0, 0 0 0 C H I C A G O - A R E A F I N A N C I A L S E R V I C E S E M P L O Y E E S R E S P O N D E D Total respondents 9,660 4,645 male 4,463 female 15 other/in transition 537 declined to answer African-American respondents 1,092 291 male 800 female 1 other/in transition Latino respondents 746 304 male 442 female MERCER 2015 16
F A C T O R S M O S T I N F L U E N C I N G T H E I N T E N T T O L E A V E T H E F S I N D U S T R Y Satisfaction with the opportunity to reach long-term career goals is the strongest driver of intent to remain in the industry for African-Americans and Latinos African-American Latino White Opportunity to reach long-term career goals FS industry reputation Type of work I do Level of work stress Ethics and integrity of co-workers Quality of leadership Interesting and challenging work Relationship with co-workers Prestige and status of FS industry MERCER 2015 17
S A T I S F A C T I O N W I T H O P P O R T U N I T Y T O A C H I E V E L O N G - T E R M G O A L S Satisfaction with the opportunity to reach long-term career goals tends to be higher for whites at the management levels W H I T E A F R I C A N - A M E R I C A N L A T I N O % SATISFIED OR VERY SATISFIED MERCER 2015 18
W O R K P L A C E E X P E R I E N C E S A S S O C I A T E D W I T H L O N G - T E R M C A R E E R O U T L O O K MERCER 2015 19
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Joining the industry: African-Americans and Latinos tended to make their decision to join the industry earlier than whites. MERCER 2015 20
My first job, at the age of 17, was at an FS institution. I was absolutely fascinated with the industry and the possibilities of establishing a lifelong career. MERCER 2015 21
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Working in the industry: Latinos are more likely to indicate that career is their first priority W H I T E A F R I C A N - A M E R I C A N L A T I N O My career is my first priority My career is currently my first priority, but I expect to have other equally important priorities in the near future My career is important to me, but I have other equally important priorities My career is important to me, but I have more important priorities My career is not important to me MERCER 2015 22
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Working in the industry Supervisor and leadership support are seen as most important for advancement W H I T E A F R I C A N - A M E R I C A N L A T I N O MERCER 2015 23
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Working in the industry Leadership matters W H I T E A F R I C A N - A M E R I C A N L A T I N O Senior leaders in my company are passionate advocates for diversity and inclusion Satisfaction with supervisor relationship MERCER 2015 24
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Working in the industry Perceptions of fairness vary by race/ethnicity W H I T E A F R I C A N - A M E R I C A N L A T I N O Application of policies Opportunities Rewards MERCER 2015 25
The amount of hard work does not translate to the amount of success that one should have. Many people work extremely hard only to be given very marginal success in terms of career progression. I have found it difficult to advance my career within this industry, because it ultimately comes down to who you know... 90% of positions already have candidates before they are even posted. MERCER 2015 26
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Working in the industry It is important to all groups to be themselves at work, but acceptance is not felt equally. W H I T E A F R I C A N - A M E R I C A N L A T I N O Important to be myself at work Feel accepted for who I am / I am able to be authentic MERCER 2015 27
I ve found you really have to have the strength to be yourself because almost everyone else conforms to a corporate standard. I m older now, so I have the strength to fully be myself. I don t think either African-American/black or Hispanic/ Latino employees are looking for any sort of preferential treatment my personal experience is that they want to work with people with whom they can relate. MERCER 2015 28
D I F F E R E N C E S I N E X P E R I E N C E S A M O N G A F R I C A N - A M E R I C A N S, L A T I N O S, A N D W H I T E S Higher-level African-Americans and Latinos are more likely to be considering leaving the industry. TOP-LEVEL MANAGEMENT MID-LEVEL MANAGEMENT PROFESSIONALS SALES ADMINISTRATIVE % Intending to leave the industry MERCER 2015 29
If there is an opportunity that I am interested in outside the industry... I will take it. You have to be fluid in this marketplace, and that is what the future will be like... forever. MERCER 2015 30
E M P L O Y E E E X P E R I E N C E S : S U M M A R Y O F K E Y F I N D I N G S A F R I C A N - A M E R I C A N S A N D L A T I N O S Having a positive long-term career outlook has the greatest influence on African- Americans and Latinos intent to remain in the industry Satisfaction with long-term career opportunities increases as management level increases for whites, but not for African-Americans and Latinos African-Americans and Latinos at the highest levels are more likely than whites to consider leaving the industry African-Americans and Latinos are less likely than whites to see senior leaders as passionate advocates for Diversity and Inclusion African-Americans and Latinos give lower ratings than whites to the fairness of opportunities Supervisor and leader support are viewed as key for advancement MERCER 2015 31
R E S E A R C H P R O C E S S A N D O R G A N I Z A T I O N O F T H E R E P O R T FS priorities and challenges The flow of talent in the Chicago FS industry Experiences in the Chicago FS industry The upshot African-American and Latino hires, promotions, and exits Survey of African-Americans and Latinos Actions for employers and industry Projected future representation MERCER 2015 32
K E Y R E C O M M E N D A T I O N S F O R E M P L O Y E R S Fill senior leadership from within Emphasize retention and build solutions tailored to specific talent segments Hire African-American and Latino talent at the Professionals career level Monitor fairness and transparency Leadership matters MERCER 2015 33
K E Y R E C O M M E N D A T I O N S F O R T H E I N D U S T R Y Create early awareness of career opportunities in the sector Expand the sources of recruitment of new graduates Identify diverse talent with skills transferable to FS MERCER 2015 34
K E Y R E C O M M E N D A T I O N S F S P Ensure alignment Maintain CEO support Keep track of progress MERCER 2015 35
A B O U T T H E A U T H O R S RICK GUZZO ALINA POLONSKAIA BESS TSCHANTZ-HAHN Rick co-leads Mercer s Workforce Sciences Institute, a research and innovation center. He is based in Washington, DC. In addition to R&D responsibilities, Rick delivers databased advisory work primarily to large, global clients on a wide range of strategic workforce issues. Rick can be reached at rick.guzzo@mercer.com. Alina is a principal in Mercer s Talent Business in Toronto. In additional to her consulting responsibilities, Alina leads two of Mercer s executive peer networks Global Diversity Forum and Workforce Opportunity Network. Alina specializes in organizational transformation and diversity and inclusion. Alina can be reached at alina.polonskaia@mercer.com. Bess is a principal employee research consultant in Mercer s Chicago office. Bess designs and implements surveys, focus groups, and interviews to help clients gather employee input on the work environment, engagement, employee programs and practices, and perceptions of the value proposition. Bess can be reached at bess.r.tschantz-hahn@mercer. MERCER 2015 36
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